Home sellers are more optimistic in selling their home than most would expect considering the lack of buyers in the market.  According to Rightmove the house asking prices have risen to a new record high but they still remain below the 2007 peak considering inflation.  In a month to month comparison from May to June there was an increase of 1% for the asking price average for a home coming to market.  London is the only area where prices have outpaced the inflation level according to Rightmove data.

The three weeks to the Diamond Jubilee weekend saw a total of almost 30,000 new sellers per week listing their homes.  This is the highest rate for new listings in the past two years.  As supply increases and demand remains weak the result will likely be a lack of sellers getting their initial asking price in actual sells. 

Rightmove director Miles Shipside said, “The better properties in the better areas remain in short supply, giving sellers of sought-after stock, and their agents, the confidence to come to market at a higher price.

“The right property within commuting or holiday bolt-hole distance of the capital seems to be an attractive each-way bet with the potential to be both recession-proof and offer good odds to keep pace with, or even outstrip, inflation."

“The reality is wage freezes, rising costs of living, and continuing tight mortgage funding have squeezed affordability for many buyers.”

The lack of rising house prices has put a damper on the remortgaging market as homeowners are finding it hard to remortgage without adequate equity as property values decline.  Many are in negative equity and must first bring their debt below their property value level.  Remortgages are out of reach of many homeowners despite the higher loan to value levels and cheap interest rates available.